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HomeMy WebLinkAboutAgenda & Minutes 4646 Dakota Street S.E. Prior Lake, MN 55372-1714 REGULAR COUNCIL MEETING AGENDA April 21, 2008 6 p.m. City Hall Preliminary Findings of Feasibility Reports ArcadiaJCR 21 and Main I Th 13 4i30 p.m. This meeting is open to the public. 1. CALL TO ORDER and PLEDGE OF ALLEGIANCE 2. PUBLIC FORUM: The Public Forum is intended to afford the public an opportunity to address concerns to the City Council. The Public Forum will be no longer than 30 minutes in length and each presenter will have no more than ten (10) minutes to speak. Topics of discussion are restricted to City governmental topics rather than private or political agendas. Topics may be addressed at the Public Forum that are on the agenda except those topics that are part of a public hearing or public information hearing. The City Council will not take formal action on Public Forum presentations. 3. APPROVAL OF AGENDA 4. CONSIDER APPROVAL OF APRIL 7, 2008 MEETING MINUTES 5. CONSENT AGENDA: Those items on the Council Agenda which are considered routine and non- controversial are included as part of the Consent Agenda. Unless the Mayor, a Councilmember, or member of the public specifically requests that an item on the Consent Agenda be removed and considered separately, Items on the Consent Agenda are considered under one motion, second and a roll call vote. Any item removed from the Consent Agenda shall be placed on the City Council Agenda as a separate category. A. Consider Approval of Invoices to be Paid. B. Consider Approval of Treasurer's Report. C. Consider Approval of Building Permit Report. D. Consider Approval of First Quarter Building Permit Report. E. Consider Approval of Animal Warden Report. F. Consider Approval of Fire Call Report. G. Consider Approval of First Quarter Fire Call Report. H. Consider Approval of a Resolution Authorizing Advertisement for Bids for the 2008 Sewer Lining Project. Consider Approval of a Resolution Approving Amendment NO.1 to the Met Council Interceptor Agreement. J. Consider Approval of a Resolution Authorizing the Purchase of Furnishings, Fixtures and Equipment for Fire Station NO.2. K. Consider Approval of a Resolution Authorizing City Staff to Complete the Ryan Park Lighting Project Restoration. I. www.cityofpriorlake.com Phone 952.447.9800 / Fax 952.447.4245 6. ITEMS REMOVED FROM CONSENT AGENDA 7 . PRESENTATIONS A. Draft 2009 - 2018 Transportation Plan B. Communications Website Update C. Proclamation Setting April 22 as Arbor Day/Earth Day in Prior Lake. 8. PUBLIC HEARINGS A. No public hearing is scheduled. 9. OLD BUSINESS A. Consider Approval of a Report Identifying Proposed 2008 Budget Reduction Measures. B. Consider Approval of a Resolution Authorizing the Mayor and City Manager to Execute the City's Standardized Professional Services Contract for 2008-2009 Stormwater Planning. 10. NEW BUSINESS A. Consider Approval of a Report Regarding Refuse Collection. B. Consider a Proposal for an Enhanced Nature Area and Trail on City Property Adjacent to St. Michael's. C. Consider Approval of a Resolution Authorizing the Negotiated Sale of $1 ,300,000 General Obligation Improvement Bonds of 2008. D. Consider Approval of a Resolution Authorizing the Purchase of Cable Television Production Equipment. E. Consider Approval of a Resolution Authorizing Purchase of Trees for CR 21/82 Restoration. F. Consider Approval of a Report Regarding Canoe Rental at Sand Point Beach. G. Consider Approval of a Resolution Authorizing Joint Compost Initiative with the Shakopee Mdewakanton Sioux Community. 11. OTHER BUSINESS/COUNCILMEMBER REPORTS A. Community Events 12. ADJOURNMENT City Council Meeting Minutes April 7, 2008 DRAFT CALL TO ORDER Present were Mayor Haugen, Councilors Erickson, Hedberg, LeMair and Millar, City Manager Boyles, City Attorney Pace, Community Development and Natural Resources Director Walthers-Moore, Planner Matzke, Public Works Director Albrecht, Assistant City Engineer Poppler, Street and Utilities Supervisor Eldred, Economic Development Director Snook, Finance Director Teschner, Assistant City Manager Meyer, Com- munications Coordinator Peterson and Administrative Assistant Green. PUBLIC FORUM The Public Forum is intended to afford the public an opportunity to address concerns to the City Council. It is no longer than 30 minutes in length and each speaker will have a maximum of ten minutes; less if there are more than three speakers. Topics of discussion are restricted to City government topics rather than private or political agendas. Topics on the agenda may be addressed except those topics that are part of a public hearing or public information hearing. The City Council will not take formal action on Public Forum presentations. City Manager Boyles explained the concept of the public forum. Comments: No person stepped forward to speak. APPROVAL OF AGENDA City Manager Boyles requested that agenda item, Consider Approval of a Resolution Authorizing Execu- tion of a Lease Agreement with Maui Wowi for Lease Space in the Library / Resource Center, be moved to the consent agenda. Mayor Haugen suggested the Council move agenda item, 10G, Consider Approval of a Resolution Approv- ing General Obligation Refunding of $945,000 Fire Station Bonds, Series 2008A, to the first item of consid- eration under New Business. MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE THE AGENDA AS MODIFIED. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. APPROVAL OF MEETING MINUTES MOTION BY HEDBERG, SECONDED BY LEMAIR TO APPROVE THE MARCH 17,2008, MEETING MINUTES AS PRESENTED. VOTE: Ayes by Haugen, Hedberg and LeMair. Erickson and Millar abstained due to their absence at the meeting. The motion carried. CONSENT AGENDA City Manager Boyles reviewed the items on the consent agenda. A. Consider Approval of Invoices to be Paid. www.cityofpriorlake.com 1 Phone 952.447.9800 / Fax 952.447.4245 City Council Meeting Minutes April 7, 2008 DRAFT B. Consider Approval of a Resolution 08-042 Approving an Amended Agreement Establishing a Transit Review Board and Planning Team for Scott County Communities. C. Consider Approval of the First Quarter Budget Report. D. Consider Approval of the First Quarter Investment Report. E. Consider Approval of a Massage Therapy License for Marion Hertaus. F. Consider Approval of a Resolution 08-043 Approving Plans and Specifications and Authorizing Adver- tisement for Bids for the Purchase and Installation of a Security Fence at the Public Works Mainte- nance Facility. G. Consider Approval of a Resolution Approving a Recycling Grant Agreement with Scott County for the Annual Spring Clean-Up Day, April 19, 2008. H. Consider Approval of a Resolution Authorizing Execution of a Lease Agreement with Maui Wowi for Lease Space in the Library / Resource Center. Councilor Erickson requested removal of item 5G, Consider Approval of a Resolution Approving a Recy- cling Grant Agreement with Scott County for the Annual Spring Clean-Up Day, April 19, 2008, and 5H, Consider Approval of a Resolution Authorizing Execution of a Lease Agreement with Maui Wowi for Lease Space in the Library / Resource Center, from the Consent Agenda. Councilor Hedberg requested removal of item 5C, Consider Approval of the First Quarter Budget Report, from the Consent Agenda. MOTION BY ERICKSON, SECONDED BY MILLAR TO APPROVE THE CONSENT AGENDA AS MODI- FIED. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Comments Consider Approval of the First Quarter Budget Report Hedberg: Asked when a comprehensive analysis of the projected budget shortfall would be available so the City can begin to plan for budget cuts. Teschner: Replied that a ten point plan has been identified and an action plan will be brought to the Coun- cil at the April 21 meeting. Haugen: Noted that a report about the reorganization of staffing for the City was brought to the first March meeting and that will be part of the action plan. Consider Approval of a Resolution Approving a Recycling Grant Agreement with Scott County for the Annual Spring Clean-Up Day Erickson: Requested staff to review the kinds of items accepted at Clean-Up Day and associated costs. Noted that funding from Scott County is changing, but Waste Management is offering a recycling day at Canterbury to take electronic recycling at no cost. Stated that next year electronics will not be accepted at Prior Lake's Clean-Up Day. Albrecht: Confirmed the City received a reduced grant from the County because free recycling is being offered by Waste Management. Depending on final gate receipts, the City's cost may be less than previous years because we will not have to pay to get rid of that recycling. Consider Approval of a Resolution Authorizing Execution of a Lease Agreement with Maui Wowi for Lease Space in the Library I Resource Center Erickson: Asked for details of the lease. 2 City Council Meeting Minutes April?,2008 DRAFT Snook: Reviewed the lease and briefly described the business. Hedberg: Asked how the leasing rate compares with similar retail space. Snook: Replied it is likely lower than typical retail space because it is in public space, small and unique. Hedberg: Supports that kind of policy in setting the price. Commented that this is an amenity for people going to the library and we want to have a successful business there. Will support. Millar: Troubled by the six month forgiveness of lease payment. Agrees there should be incentives for downtown businesses, but questions if forgiveness of lease payments is best for the City. Recognizes there are start-up costs for the business. Asked if there are other templates or models for leasing ar- rangements and incentives for bringing businesses into particular buildings, if six months is considered a long start-up time and whether businesses are held firmly to the leases. Snook: Commented that Maui Wowi expended more in start-up costs to acquire equipment than originally planned. Noted that it is a franchise, stable and a proven product. Added that this owner will be paying property taxes and has agreed to a four-year lease with the option for the City to extend the lease an addi- tional four years. Hedberg: Stated that it is typical for some amount of allowance to be included as part of the consideration for signing the lease. We are offering free rent rather than an allowance. Haugen: Noted that the lease rate equates to $25 per square foot, which is similar to the Rock Creek Building. The agreement includes a 5% inflation factor stepped in, which is pretty good and there is a $1,500 deposit paid. Affirmed that it is common to build in incentives or build out costs and the City has a potential eight-year lease with no build out costs and competitive rates. Believes it is good for the City. LeMair: Stated the space is uniquely different and Maui Wowi is a proven business with several fran- chises. Believes it will be an asset to our downtown and will support. . Erickson: Asked if Flybig, Inc. is the same corporation that is running Maui Wowi at the Mall of America noting that they have a proven track record. Agrees this will be a benefit to the library, the downtown and the City. Will support. MOTION MADE BY LEMAIR AND SECONDED BY HEDBERG TO APPROVE: 1. THE FIRST QUARTER BUDGET REPORT. 2. RESOLUTION 08-044 APPROVING A RECYCLING GRANT AGREEMENT WITH SCOTT COUNTY FOR THE ANNUAL SPRING CLEAN-UP DAY, APRIL 19, 2008. 3. RESOLUTION 08-045 AUTHORIZING EXECUTION OF A LEASE AGREEMENT WITH MAUl WOWI FOR THE COMMERCIAL SPACE LOCATED WITHIN THE LIBRARY RESOURCE CENTER AT 16210 EAGLE CREEK AVENUE. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. PRESENTATION New Downtown Business (Mary Bigler - Maui Wowi) Mary Bigler of FlyBig, Inc., dba Maui Wowi, provided a Power Point presentation giving the history of the founding of Maui Wowi, and described the business and its products. Comments: Erickson: Stated he looks forward to the business opening. leMair: Concurred. Hedberg: Thanked Ms. Bigler for the presentation and wished her well. Millar: Commented that the business looks like a terrific fit for the library. Haugen: Thanked Ms. Bigler for the presentation and the samples of her product. 3 City Council Meeting Minutes April 7, 2008 DRAFT PUBLIC HEARING No public hearing was scheduled. OLD BUSINESS Consider Approval of a Resolution Accepting Bids and Awarding the City's Standardized Construc- tion Contract for Street and Utility Construction for the 2008 Street Reconstruction Project (City Project 08-11). Assistant City Engineer Poppler reviewed the Brooksville Hills, Phase I, project and the bids received. Noted that S. M. Hentges provided the low bid thirty percent below estimate, and reviewed some of their previous work with the City. Comments Hedberg: Commented that it is good news to have received many bids and some that were well under estimate. Asked why a bid was rejected. Poppler: Replied that one line item was left blank and the addendum was not acknowledged in their bid. Hedberg: Acknowledged that there may be change orders, but believes the neighborhood will probably receive a lower assessment than what was presented to them. Glad to be back on track to do reconstruc- tion projects in neighborhoods each year. Millar: Agreed that a bid that is thirty percent below estimate is incredible and expressed excitement about the rain garden program included with this project. Erickson: Concurs with previous comments and added that S. M. Hentges is a credible bidder who has done a lot of work for us. LeMair: Will support. Believes the City is fortunate to receive low bids, but that it reflects hard times for contractors who are looking for work. Haugen: Summarized that S. M. Hentges is a known commodity and great bids achieved a half million dollar reduction which saves money for the neighborhood and everyone else in the community. MOTION BY HEDBERG, SECONDED BY ERICKSON TO APPROVE RESOLUTION 08-046 ACCEPTING BIDS AND AWARDING THE CITY'S STANDARDIZED CONSTRUCTION CONTRACT FOR STREET AND UTILITY CONSTRUCTION FOR THE BROOKSVILLE HILLS PHASE I IMPROVEMENT PROJECT (CITY PROJECT #08-011). VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of Two Resolutions: 1) Accepting Proposals and Authorizing Bolton & Menk, Inc. to Provide Construction Staking for the 2008 Construction Projects; and, 2) Accepting Propos- als and Authorizing Braun Intertec to Provide Construction Testing for the 2008 Construction Pro- jects. Assistant City Engineer Poppler reviewed the proposals. Comments LeMair: Asked how the professional services bid list is generated and whether anyone can ask to be on the list. Albrecht: Responded that RFPs were sent last fall to any vendor who was interested in being on the list, staff reviewed the proposals received and staff selected consultants to be in our pool. Erickson: Noted that in contracting for an intellectual property, staff needed to do an evaluation to assure vendors meet our standards. 4 City Council Meeting Minutes April 7, 2008 DRAFT Albrecht: Added that the City does not have to accept the low bid in professional services so a profes- sional pool was established which streamlined the process. Millar: Will support. Hedberg: Emphasized that the City does not have to be competitive for professional services, but wants to have qualified vendors do the work. This whole program is a mechanism to assure we have qualified ven- dors from each professional services category and then have the benefits of bidding among those qualified vendors. This type of program of having a professional services pool is becoming a standard in most cit- ies. MOTION BY ERICKSON, SECONDED BY MILLAR TO APPROVE RESOLUTION 08-047 AUTHORIZING BOLTON AND MENK, INC. TO PROVIDE CONSTRUCTION STAKING SERVICES FOR 2008 CON- STRUCTION PROJECTS. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. MOTION BY ERICKSON, SECONDED BY MILLAR TO APPROVE RESOLUTION 08-048 AUTHORIZING BRAUN INTERTEC TO PROVIDE CONSTRUCTION TESTING SERVICES FOR 2008 CONSTRUCTION PROJECTS. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of a Resolution Authorizing Release and Distribution of a Request for Qualifica- tions and Proposal for Downtown Redevelopment. Rebecca Kurtz from Ehlers & Associates was present. Economic Development Director Snook used a Power Point presentation to explain the Request for Qualifications and Proposal for downtown redevelop- ment and spoke of the items the RFP would cover, the process that would be used and which developers might be interested. Criteria that will be used to qualify and select a developer were described as well as the estimated timeline. Comments LeMair: Stated this is the culmination of many years work and he is anxious to see what comes back with the market where it is right now. Wonders who will step up to redevelop a whole block. Believes it is pru- dent to have these plans laid out and pursue the project comprehensively rather than piece meal. Erickson: Agreed this has been a long process; and that commercial development is lively and this is a good time to put this out. Questioned how CR 21 and Main will be laid out as it can impact the redevelop- ment. Albrecht. Replied that a City Council work session about the Arcadia and CR 21 intersection is scheduled for April 21, and at this point the County is waiting for the City to come forward with funding and direction about how we want to proceed. Erickson: Asked if the intersection plan needed to be in place before the RFQ/RFP goes out. Albrecht: Replied that the transportation plan will be adopted by the time the RFPs are returned. Erickson: Commented that it is important to work with Scott County and design the downtown to be an area that does not have a segregated north side and south side. Millar: Agreed that it is important to have a vibrant downtown and the City has come a long way in the last 8-10 years with redeveloping downtown. Noted that previous and current Councils have worked hard to move this initiative forward. Believes it will be important for developers to work with existing businesses. Feels encouraged that we are addressing the challenges with traffic in downtown. Hedberg: Noted that the Council reviewed its top priorities in January and downtown redevelopment is near the top of the list. Asked for the definition of "structured parking." 5 City Council Meeting Minutes April 7, 2008 DRAFT Snook: Replied that it means a vertical structure such as a parking ramp. Hedberg: Commented that several communities have developed some sort of parking structure into their downtown area. Acknowledged comments about the current market, but believes this may be ideal timing as anything that will be built will be available by 2010 or 2011. Suggested there is a risk that Prior Lake may be harder to market in the future if this RFP is not successful now. Noted that the RFP document talks about the Arcadia and CR 21 intersection stating that roadwork is estimated to be funded by 2010; and the Council will be taking action about that soon so the information will be clear. Asked if local developers will be receiving the RFP. Snook: Replied that it would be sent to Rock Creek, Wensmann and Scott County HRA. Hedberg: Stated that he can see a good argument for local developers as they are people with ties and ongoing commitment to the community. Agrees it is important to have downtown business owners actively involved in this process and expects that there will be an active effort by staff to take this RFP to them and brief them about the direction we are going so they will be participating members of the process. Haugen: Reviewed the activity of the past years stating that when the 2030 Vision and Strategic Plan was initiated, downtown redevelopment was key. The first step was the building of Lakefront Plaza by Wensmann, which was followed with the far;ade improvement. This is another step. Agreed that the City needs to be proactive in communicating to downtown businesses and building owners; and that transporta- tion is a critical component even though it would be an issue regardless of whether the downtown is being redeveloped. MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE RESOLUTION 08-049 APPROVING REQUEST FOR QUALIFICATIONS AND REQUEST FOR PROPOSALS FOR DOWNTOWN REDEVEL- OPMENT AND DIRECTING STAFF TO PLACE LEGAL NOTICE IN THE CITY'S OFFICIAL NEWSPAPER. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of a Report to the City Council Regarding TH 13 and CR 12 Intersection. Public Works Director Albrecht described the intersection and the sidewalks/trails to be added when completed. Noted this intersection is set up to be signalized in the future when warranted. Countyengi- neers determined there is not a safety consideration with the placement of the stop sign and recommends no changes to the current plan. Explained the rationale for placement of the stop sign and median. Comments Haugen: Stated that at a previous meeting he was under the impression that there had been a delay in a response by the County Commissioner to the complaint. He has since learned that was not the case and apologized to Commissioner Marschall for that misunderstanding. LeMair: Commented that he also pulls past the stop sign on that intersection noting that it feels uncom- fortable to stop behind it. Without the trails there is no inherent response to stop there, but he assumes there will be a crosswalk in the future. Otherwise, he did not feel that the intersection was unsafe. Erickson: Stated it was informative to learn about the planned crosswalk and now has heard the logic about why the stop sign is where it is. Stated that most people do not stop where the sign is now but rather drive past it and stop where they feel they should, which is closer to the intersection. Assumes that will change when the crosswalk is installed. Noted that if cars are in the right hand lane, a driver has to pull up to the road intersection in order to see whether it is clear to make a left turn onto TH 13. Felt it was impor- tant to bring it up when we could still look at what is best and safest for the city. Hedberg: Asked when the trail is programmed for construction. Albrecht: Replied the crosswalk would be painted early this summer and the trail would be constructed in mid-summer. 6 City Council Meeting Minutes April 7, 2008 DRAFT Hedberg: Noted that he also crept forward from the stop sign to get closer to the intersection to evaluate where the traffic is coming from when making a left turn. Thinks that will happen until it is signalized. Millar: Thanked Albrecht for a thorough report. Took the opportunity to congratulate Commissioner Mar- schall on receiving the Outstanding Woman in Government award. MOTION BY MILLAR, SECONDED BY LEMAIR TO APPROVE THE REPORT. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of a Resolution Accepting Bids and Authorizing the Mayor and City Manager to Execute the City's Standardized Construction Contract for the 200S Street Overlay Project. Streets and Utilities Supervisor Eldred described the 2008 overlay projects and bids noting that the low bid was $20,000 below the estimate for this project. Comments Hedberg: Commented that once again the City benefits from a weak construction market. Millar: Will support. Erickson: Will support. LeMair: Will support MOTION BY HEDBERG, SECONDED BY MILLAR TO APPROVE RESOLUTION 08-050 ACCEPTING BIDS AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE THE CITY'S STANDARD- IZED CONSTRUCTION CONTRACT FOR THE 2008 STREET OVERLAY PROJECT. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. NEW BUSINESS Consider Approval of a Resolution Approving Sale of $945,000 General Obligation Refunding Fire Station Bonds, Series 200SA. Finance Director Teschner explained his review of existing bonds to consider which might be candidates for refinancing. Noted the Fire Station No.1 bond was eligible and that there is six years left on the bond. Steve Mattson of Northland Securities stated the existing bond rate was 4.29% and it could be refi- nanced to 2.62% for a net savings of $30,850.61. Informed the Council that this bond series was being purchased by Prior Lake State Bank. Also informed the Council that Moody has reaffirmed the City's AA3 level and that he hopes for an upgrade to an AA2 rating next year. Comments Millar: Commented that this action affirms the great job that the Finance Director has done for many years. Thanked Prior Lake State Bank for stepping up and saving the taxpayers $30,000. Hedberg: Complimented staff on a job well done. LeMair: Will support. Impressed that the City continues to stay aggressive and not become stagnant. Thanked Prior Lake State Bank. Erickson: Asked if the note was executed today and, if so, why the Council is being asked after the fact. Teschner: Replied that the execution is always subject to Council approval and that he has been directed to take advantage of best financing. Erickson: Thanked Prior Lake State Bank. Will support. Haugen: Concurred with previous comments. 7 City Council Meeting Minutes April 7, 2008 DRAFT MOTION BY HEDBERG, SECONDED BY LEMAIR TO APPROVE RESOLUTION OS-051 PROVIDING FOR THE ISSUANCE AND SALE OF $945,000 GENERAL OBLIGATION REFUNDING FIRE STATION BONDS, SERIES 2008A AND LEVYING A TAX FOR THE PAYMENT THEREOF. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of Resolutions Related to Fire Station No.2: (1) Accepting Quotes for Landscap- ing Materials, (2) Authorizing Purchase of Office Furniture, (3) Approving Change Order, and (4) Re- port on Construction Schedule and Budget. Public Works Director Albrecht outlined the scope of the report and described the landscaping plan with proposed costs of approximately half the budgeted amount. Assistant City Manager Meyer explained the furniture plan. Owners Representative Bill Wolters, Constructive Ideas, presented a Power Point pro- gram showing the status of construction and described Change Order #2 in the amount of $19,900. Com- mented that expects the project to be completed under budget by approximately $400,000. Comment Erickson: Complimented the architects who designed the building to complement the neighborhood. Stated it is good news to be under budget by $400,000, and appreciates the reduced cost for landscaping and the competitive bid on furniture. Believes it makes sense to have the furniture designed to be inter- changeable with that in the police station and city hall. Millar: Noted that the project has come a long way from the ground breaking and initial meetings to get it up and going. Thanked Wensmann for donating the property for the fire station. Will approve. Hedberg: Complimented Wolters' work with the architect and the firefighters that helped the design to fit in with the neighborhood. Echoed thanks to Wensmann. LeMair: Praised committee involved with putting together the plans. Haugen: Stated the fire station is turning out wonderfully and the firefighters are excited about moving in. Believes the new station will allow an addition to the number of firefighters and protection to the City. Thanked Wensmann for property donated for the fire station and the elementary school. MOTION BY MILLAR, SECONDED BY HEDBERG TO APPROVE RESOLUTION OS-052 AUTHORIZING THE PURCHASE OF LANDSCAPE MATERIALS FOR FIRE STATION NO.2 VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. MOTION BY MILLAR, SECONDED BY LEMAIR TO APPROVE RESOLUTION OS-053 AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO THE CITY'S STANDARDIZED CONTRACT FOR THE PURCHASE AND INSTALLATION OF OFFICE FURNITURE FOR FIRE STATION NO.2 FROM THE HENNEPIN COUNTY COOPERATIVE PURCHASING CONTRACT THROUGH HENDRICKSEN PUBLIC SECTOR GROUP. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. MOTION BY MILLAR, SECONDED BY LEMAIR TO APPROVE RESOLUTION OS-054 AUTHORIZING CHANGE ORDER NO.2 FOR FIRE STATION NO.2. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. 8 City Council Meeting Minutes April?,2008 DRAFT Consider Approval of a Senior Care Overlay District in the C-4 (General Business) Zoning District for Fountain Hills. Planner Matzke described the proposal, site plan and floor plans, as well as the services provided by Pro- fessional Resource Network Senior Care. Advised the Council that the Planning Commission has ap- proved the application with conditions. Comments LeMair: Queried whether the original plan was intended to sell buildings on three lots individually. Matzke: Replied that the original plan was to have separate buildings for mortgage purposes. Noted that some stormwater calculations need to be worked out with future phases and stormwater permits will be granted as they become necessary with future buildings. LeMair: Believes this is a good use of the property noting that it will use less green space than some alter- natives that could be there. Likes the shared garages idea. Noted that the Planning Commission asked for a neighborhood meeting and there did not appear to be negative feedback. Will support. Hedberg: Asked where and how many facilities the Professional Resource Network Senior Care Senior has. Matzke: Replied that Professional Resources Network is the core company with over 400 home care cli- ents in the metro area. Generally, they are operators of the facilities rather than owners. The senior care component is the assisted living with about 80 employees and two other facilities that are successful. This facility will have 5-6 staff on site during the day time with approximately 15 staff members throughout the 24-hour period. Hedberg: Asked if this is the appropriate timing of need for senior care facilities in Prior Lake since Key- stone, Lakefront Plaza, and Creekside already exist. Noted that McKenna Crossing will have 450 units when completed. Matzke: Replied that McKenna will have broad based services and understands that many of the assisted living units sold really well. Moore: Described the McKenna units for memory care and assisted living care, and where the senior liv- ing units will be built. Hedberg: Asked if we have information about how well the assisted care and memory care units are filling up. Moore: Replied that the memory care units filled and there is a waiting list, and that the assisted living units are approximately 85% filled. Hedberg: Recognized that this plan for people ages 75+ is a unique market, but wants to assure that the market does not become oversaturated with units. Commented on funding programs noting that this is not a nursing home and he does not know if it is eligible for medial assistance. Commented on funding pro- grams and stated the land use issue the Council addresses is affordable housing and wonders if this facility will meet that objective. Will be asking if this will be structured to accept public assistance financing and on what basis as that is an important criteria for determining whether this will help us provide affordable as- sisted care. Believes privately funded assisted care is not affordable. Millar: Will support. Erickson: Related his experiences of seeking an assisted living facility for his parent ten years ago and there wasn't anything in Prior Lake so he is glad to see facilities like this coming to Prior Lake and wel- comes them. Asked if this building's external materials have to meet commercial specifications in this zone. Matzke: Replied that a senior overlay district is a special revision to the ordinance that allows for residen- tial senior overlay districts to be allowed in a few of our commercial districts for the purpose of proximity for 9 City Council Meeting Minutes April 7, 2008 DRAFT 911 services, access to arterial streets in the community for public transportation and access to regional facilities. Erickson: Asked if residential materials are allowed since this is next to residential zoning or because it is a senior overlay in a commercial district. Matzke: Replied that because it is a senior overlay laid over the commercial code with the purpose of pro- viding proximity to services that seniors would not have if they were located in the center of a residential area. Erickson: Asked if the facility use would change in the future, what the status would be of the external building materials Matzke: Replied that if the senior housing component were removed, the building would have to be up- graded to commercial building use. Erickson: Stated this looks like a great project and he is not concerned about an over-abundance of sen- ior housing. Haugen: Commented that this is a great blend from commercial to residential in appearance and ques- tioned what percentage of residents at McKenna are from outside Prior Lake. Kermit Mahlum, Shepherd's Path: Replied that more than fifty percent of residents moved in from other locations. Haugen: Believes there is an increasing demand for senior communities with factors such as people whose parents are coming from other places environments to live here contributing to that demand. Charie Devolites, Professional Resources Network Senior Care (PRNSC, LLC), stated that PRNSC serves over 400 residents throughout the metro area. Services are provided in a family home environment. Residents can have as much independence as they can manage, but someone is there to help them all the time. Hedberg: Asked if PRNSC qualifies for and accepts payment from the medical assistance elderly waiver plan. Devolites: Replied they are not a private pay only. They applied for both Class A and Class F facility li- censes which would allow insurance refunded services as well as elderly waiver clients. Hedberg: Believes it is significant to allow for people with less financial means to take advantage of these services as there is a significant proportion of elderly in Scott County who cannot qualify for market rates. Appreciates that the PRNSC business plan allows provision for a broader range of needs. Erickson: Thanked PRNSC for bringing their facility to Prior Lake as such facilities are hard to find that will allow people to move from assisted living to nursing home care. Devolites: Confirmed that they are allowed to provide care through the continuum to the end of life. Haugen: Stated there is a good market, good need and good fit and the end product will be an asset to all concerned. MOTION BY LEMAIR, SECONDED BY HEDBERG TO APPROVE RESOLUTION 08-055 APPROVING A SENIOR CARE OVERLAY DISTRICT FOR THE DEVELOPMENT OF AN ASSISTED LIVING FACILITY. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of a Resolution Authorizing the Initiation of Quick Take Eminent Domain Pro- ceedings for Property Located at 16328 Main Avenue SE (formerly the Minnesota Nails Building). City Manager Boyles presented a Power Point to explain the reasons for using quick-take eminent domain stating that sometimes an entity needs a property and cannot acquire it with an arms length purchase. Reasons the City needs to acquire the property were set out, namely to provide parking for downtown busi- nesses and patrons. Spoke of the 2003 parking study conducted by the City that identified that 400-600 additional parking spaces will be needed. Described past attempts to purchase this property, the fact that 10 City Council Meeting Minutes April 7, 2008 DRAFT the property is unused and uninhabitable and that the seller's price exceeds the appraised value. Talked about the process of eminent domain. Comments LeMair: Noted that the property has been vacant for more than three years and is not contributing to the energy of downtown. Favors eminent domain stating this is not taking a business from someone, but rather the property is being leveraged against the City in developing the community. Asked what amount the cur- rent owners paid for the property. Boyles: Replied that the owner states $91,000, but records indicate $89,000. LeMair: Stated that the City offered them a price that reflects the market and allows them to make money on their investment and he considers that $130,000 is giving them more than it is worth. Believes the cur- rent owner has a chance to make money and the City can provide parking and get rid of two buildings that look terrible. Erickson: Stated he would not want the City to misuse eminent domain; but believes this is not misuse as it is a situation where citizens should be allowed to enhance the City and it would allow the purchase of the property at a more than fair price. Will support. Millar: Respects the idea of personal property ownership and is reluctant to use eminent domain but he has to balance the individual's interest with the public interest. Stated it would be an agonizing decision if there was an existing business, but the property has been vacant for 3Y2 years. Commented that he feels pride in the City's accomplishments in the downtown area, but there is still a long way to go and the City needs to provide opportunities for economic growth and to attract people from neighboring communities. Every effort has been made to negotiate a fair price with the seller. Believes the owner is holding up the City and preventing it from moving forward with this piece of the downtown redevelopment. Will support this action because there is a responsibility to other business owners as well as the need for public parking. Hedberg: Stated he is not necessarily reluctant to use eminent domain, but believes such action should be cautious and conservative and this circumstance meets that standard. Haugen: Stated that this process has been underway for a number of years and currently an offer of more than the appraised value has been offered. Believes this property will help meet parking needs and long term downtown redevelopment and will benefit the general public. Noted that the City will incur costs from the eminent domain process and the owner has the risk of ending up with less money. MOTION BY HEDBERG, SECONDED BY LEMAIR TO APPROVE RESOLUTION OS-056 AUTHORIZING THE USE OF EMINENT DOMAIN TO ACQUIRE PROPERTY IN THE DOWNTOWN BUSINESS DIS- TRICT TO PROVIDE PARKING FACILITIES. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Consider Approval of a Resolution Approving an Amendment for Shepherd's Path Planned Unit De- velopment. Community Development and Natural Resources Director Walters-Moore advised the Council that the PUD is already approved and described the elements of the proposed amendment such as a parking lot relocation, building height, foot print and uses of different areas of the building. Explained recommended conditions including impervious surface, assurance that 100 paved parking spaces will be available on the campus west of McKenna Road and that there will be a crossing guard at peak traffic volume. Noted that no citizen made comment about the plan at the public hearing. Kermit Mahlum of Shepherd's Pat and Phil Nyvall of Twin Cities YMCA were present. 11 City Council Meeting Minutes April 7, 2008 DRAFT Comments Millar: Asked how the applicants feel about the conditions recommended. Walthers-Moore: Replied she has spoken with Mahlum regarding the conditions and received a response that they are acceptable to them. Mahlum: Affirmed that the conditions can be worked with. Stated they feel fortunate to have the YMCA as part of the project and hope to add another component that will ultimately answer the parking situation. Millar: Agreed that the YMCA is going to be an important part of the community. Will support. Hedberg: Added that the YMCA is an important facility for the entire northern Scott County and he is glad it is going to be in Prior Lake. Stated this amendment is just a fine tuning of the plans. Noted that the park- ing lot around Safe Haven seems large and asked if some of it was intended to be used as overflow. Moore: Affirmed that the lot is much larger than needed for Safe Haven and was built to serve as overflow from the church or the YMCA or other uses. Hedberg: Asked if the overflow parking on west side of McKenna would still be needed. Walthers-Moore: Replied that is an unknown and it is being planned for in the event it is needed for the residential facilities in that area. Erickson: Asked if the YMCA would have to come back to the Council for approval for the future expan- sion area. Walthers-Moore: Replied that the final PUD and specifications would come back to the Council. Erickson: Asked what the 3D-day period for having the YMCA closed on Sunday morning would achieve. Walthers-Moore: Replied that the intent is to learn whether there is a parking issue so a bituminous sur- face could be laid if needed. Erickson: Asked how that would be evaluated. Walthers-Moore: Replied that if there are no vacancies during services, it would be evident that more spaces would be needed if the YMCA were also open. Erickson: Asked if the area designated as a public park would be City or privately owned. Walthers-Moore: Replied that the wetland complex and the trail system is all dedicated City park property and a play structure will be installed. LeMair: Commented that the YMCA offers a lot of different uses. Expressed disappointment that there is no water park, but understands that the City could not contribute to that at this time. Will support. Haugen: Queried about the amount of parking. Walthers-Moore: Replied that there are 193 stalls on the east side and underground parking of 88 places which is used by residents. Haugen: Asked if there is access to the YMCA from the east. Walthers-Moore: Replied it is more likely to be accessed from the front or the west side. Mahlum: Commented that there will be an entrance from the church to the YMCA and there will be con- nections to the YMCA from each entrance. Believes everyone working with this project would agree that there will no parking problems until expansion takes place. Haugen: Asked when the YMCA opening is scheduled. Walthers-Moore: August 2009. Haugen: Wondered if the 3D-day waiting period had merit since August may have lighter attendance due to adult tendency to recreate outside in the summer. Walthers-Moore: Agreed that if a 3D-day waiting period is not warranted, it could be waived. Haugen: Asked if waiving it meant the City would be mandating the additional parking at the beginning. Walthers-Moore: Replied that it could be waived. Erickson: Suggested a review of parking space use six months after opening. Hedberg: Recommended several reviews and agreed with a review in 30 days to determine if the addi- tional100 spaces should be paved. 12 City Council Meeting Minutes April 7, 2008 DRAFT Millar: Noted that a six-month review would be in the middle of winter, but if parking is reviewed in 30 or 60 days, the parking could still be added. Haugen: Noted that the way the condition is written would result in it coming back to the Councilor the Planning Commission 30 days after opening and the Council does not need to be involved in a review sev- eral times. Walthers-Moore: Offered that it would be a staff decision. Haugen: Suggested the condition be that 60 days after opening, parking would be reviewed by staff and a determination made about whether additional parking should be put in. Erickson: Believes the YMCA should be open during that time in order to get a better idea of whether parking is needed. Hedberg: Concurred and suggested that the YMCA, Shepherd's Path and City staff can address it sooner if they want to. MOTION BY ERICKSON, SECONDED BY HEDBERG TO APPROVE RESOLUTION OS-057 AMENDING THE PLANNED UNIT DEVELOPMENT PLAN KNOWN AS SHEPHERD'S PATH WITH CONDITIONS MODIFIED TO ALLOW REVIEW OF PARKING NEEDS BY CITY STAFF, YMCA AND SHEPHERD'S PATH WITHIN 60 DAYS OF YMCA OPENING TO DETERMINE IF AN ADDITIONAL 100 PARKING SPACES SHOULD BE PAVED. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. Mahlum commented that Shepherd's Path and YMCA staff members have been asked to park in the Safe Haven parking lot so other spaces will be available for others. Consider Approval of a Resolution Urging the Minnesota House, Senate and Governor Pawlenty to Support the Capital Bonding Request Submitted by Scott County for the S.C.A.L.E. Regional Public Safety Training Facility. City Manager Boyles informed the Council that he learned the State bonding bill was returned from the Governor's office with one million dollars included for the SCALE Regional Public Safety Training Facility. Comments Haugen: Stated that the facility's Board of Directors had been concerned and thanked the Legislative dele- gation for a wonderful job. Anticipates that there will be a grand opening at the facility in coming months. Boyles: Added that Mayor Haugen is serving as Chair of the Board of Directors and was very aggressive trying to get this bonding passed. MOTION BY HAUGEN, SECONDED BY ERICKSON TO SEND A THANK YOU LETTER TO THE GOV- ERNOR AND THE CAPITAL INVESTMENT COMMITTEE FOR INCLUDING THE FACILITY IN THE BOND BILL. VOTE: Ayes by Haugen, Erickson, Hedberg, LeMair and Millar. The motion carried. OTHER Community Events Albrecht: Listed items that will be accepted at the April 19 Clean-Up Day as well as the cost for dropping them off. Reminded the audience that Bridging would be accepting furniture items; and that the Waste Management electronic recycling days will be April 11 & 12 at Canterbury Downs. Haugen: Added that Bridging is supported by the Prior Lake Lions and Prior Lake Rotary. 13 City Council Meeting Minutes April 7, 2008 DRAFT LeMair: The Chamber's Ladies Night Out event is Thursday, April 1 O. Six youth wrestlers participated at the USA National tournament and three placed. Hedberg: Announced that Club Prior's Grand Opening will be May 15 from 4 - 7 p.m. Haugen: The Prior Lake Fire Department held its annual spring dance and social last weekend. ADJOURNMENT A motion was made by Millar and seconded by LeMair to adjourn the meeting. With all in favor, the meet- ing was adjourned at 10:25 p.m. Frank Boyles, City Manager Charlotte Green, Administrative Assistant 14